Holmdel Salesman Admits Role in Biotesting Kickback Scheme

A salesman from Holmdel faces a lengthy prison term when he's sentenced in November for his role in a multi-million-dollar kickback scheme centered in a Parsippany blood-testing lab.

In Newark today, Len Rubenstein, 42, pleaded guilty to conspiring to violate the Anti-Kickback statue and the Travel Act, money laundering, and lavishing doctors with thousands of dollars on behalf of Biodiagnostic Laboratory Services LLC.

Thirteen defendants previously admitted connections. Investigators in New Jersey U.S Attorney Paul Fishman's office say the scheme sent more than $100,000,000 from Medicare and private insurors to BLS, with bribes in the millions.

Last April, federal agents arrested David Nicoll of Mountain Lakes, his brother and senior BLS executive Scott Nicoll of Wayne, and BLS employee Craig Nordman of Whippany. Nordman was Chief Executive Officer of Advantech Sales, LLC, which investigators say was one of the firms used to channel illegal payments.

Rubenstein admitted bribing doctors to refer patients to BLS and hiding the money in an entity under his control, Delta Consulting Group LLC, between May 2012 and April 2013.

The money laundering charge carries a maximum penalty of 20 years in prison and fines up to $500,000, or twice the gain or loss from the violation. The bribery conspiracy count could mean another five years and $250,000 in fines. Investigators say that forfeitures so far amount to more than $3,000,000.